HMRC’s appeal against a court ruling last year which said waste deposited as ‘fluff’ at landfill sites was not liable for tax began today (23 March) at a remote hearing at the Court of Appeal.
HMRC’s appeal relates to a long-running dispute between HMRC and three waste companies: Biffa, Veolia and Devon Waste Management. HMRC claims that as fluff is made of residual waste it should be taxed as waste. The waste companies argue that as it serves a purpose it should not.
The long-running dispute between HMRC and three waste companies centres on whether landfill fluff is taxable (picture: Shutterstock)
In January 2020, the waste companies were successful in the Upper Tribunal in appealing an earlier verdict which said the material was taxable (see letsrecycle.com story). HMRC confirmed its intention to appeal the Upper Tribunal’s decision in March 2020 (see letsrecycle.com story).
The remote hearing at the Court of Appeal began today, before Lord Justice Newey, Lady Justice Rose and Lord Justice Nugee. It will go on until 26 March. If HMRC is successful in its appeal the case could go all the way to the Supreme Court.
The day was largely taken by HMRC explaining its position. HMRC was represented by Melanie Hall QC.
Use
HMRC’s case hinges on its belief that the use of residual waste as fluff is not the “reason” it is placed in a landfill cell. It argues it has been deposited as waste, “carefully” and in line with permit requirements so as not to damage the cell’s liner.
Mrs Hall used an analogy to help explain HMRC’s position on the issue of use. She said: “I walked into my study today with the intention of addressing the Court of Appeal. That’s the overall context of my presence in this room.
“If you dial up the microscope, you could infer from the fact that I am sitting on this chair that I also intended to alleviate the risk of back-ache by using the load-bearing capacity of my chair to support my back, and that that was one of my intentions.
“If you dial up the microscope even further, you will find my intention to use the smooth quality of my desk to alleviate the risk of my mouse not working effectively.
“Now, the all-important need to have a fully functioning mouse and to sit down in the course of addressing the Court of Appeal does not transform the essential nature of the activity in which I am engaged, which is the activity of addressing the Court of Appeal. The existence of those uses cannot transform that essential activity into a different activity.”
She added: “Most people would regard the hyper-granulated approach which I’ve just outlined as to why I am in this room as being disconnected from the real world, artificial and contrived… I say that any other uses of materials and facilities in this room, which are incidental, adjunct to or integral parts of the use to which it is going to be put, are comparable to the hyper-granular approach taken by the Upper Tribunal.”
The case continues.
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Source: letsrecycle.com Waste Managment
